The significance of Broad-Based Black Economic Empowerment (B-BBEE)

South Africa has enjoyed 28 years of freedom & consistent growth. Unfortunately, the level to which this growth has been shared fairly amongst all South Africans is not yet adequate for the requirements of creating a stable, integrated, and prosperous society.

South Africa’s new Constitution enshrined the right of all South Africans to equality and provided for specific measures to be taken to redress historical imbalances. The Black Economic Empowerment (BEE) Commission that President Cyril Ramaphosa chaired, was established to study ways to empower black South Africans to participate more fully in the economy to address the systematic exclusion of the majority of South Africans from full participation in the economy.

?One of the recommendations in the Commission report issued in 1998, was the introduction of B-BBEE Act as an instrument to be used to define B-BBEE, establish legislative framework for the transformation of our economy, and set out indicators to measure progress by the private and public sector.

The application of B-BBEE has evolved since the release of the B-BBEE Strategy in 2003 and the promulgation of the B-BBEE Act 53 of 2003, amended in 2013 to strengthen the effective and consistent implementation, reporting across the economy as well as to put in place mechanisms to deal with circumvention of the legislation, the B-BBEE Commission was also established to create an institutional environment for monitoring and evaluating B-BBEE.

The execution of B-BBEE that is misaligned with the policy objectives has created misperception in the market, that has undermined the country’s objectives to address imbalances of the past and increase participation of all South Africans, individuals and enterprises at all levels in the economy.

The government’s approach is that BBBEE process is an inclusive one, and all individuals and enterprises operating within South Africa should participate in this process.?It is a tool used to broaden the country’s economic base and accelerate growth, creation of employment and poverty reduction.

At Zwonaka we provide #BBBEE advisory services that are associated with good governance, to infuse good corporate governance practices during the implementation of B-BBEE. We pride ourselves on having sound transformation solutions. Zwonaka differentiates itself not only by understanding the full breadth and depth of B-BBEE legislation but by offering sustainable solutions for Private and public sectors that goes beyond the parameters of compliance.

In conclusion it is important to note that we need to take collective actions to achieve the objectives of poverty reduction, skills development, creation of employment, and SMME’s development.

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